The government has decided to buy 60 thousand metric tons of urea fertilizer in view of the proposal of the Ministry of Industry. To buy this urea fertilizer will cost 245 crore 65 lakh 50 thousand taka.
The Advisory Council Committee on Public Procurement has approved the purchase of this fertilizer from domestic company Karnaphuli Fertilizer Company Limited (Kafco) and Sabiq Agro-Nutrients Company of Saudi Arabia.
On Wednesday (November 27), Finance Advisor Salehuddin Ahmed chaired a meeting of the Advisory Council Committee on Government Procurement at the Secretariat. This meeting approved the purchase of this urea fertilizer.
According to the information provided by the officials, approval has been given to purchase 30 thousand metric tons of bagged granular urea fertilizer in the eighth lot from Kafco. Bangladesh Chemical industries Corporation (BCIC) will buy this fertilizer. It will cost 120 crore 82 lakh 50 thousand taka.
A revised agreement was signed for the purchase of 5.40 lakh metric tonnes of urea fertilizer from Kafco as per the plan for the financial year 2024-2025. KAFFCO sent price offer when requested to send price offer for purchase of 30 thousand metric tons of bagged granular urea fertilizer in eighth lot in FY 2024-2025.
According to the contract with Kafco,it was decided to purchase 30 thousand metric tons of bagged granular urea fertilizer in the eighth lot at USD 335.625 per metric ton for a total of USD 1 crore 68 thousand 750. Its amount in Bangladeshi currency is 120 crore 82 lakh 50 thousand taka.
In view of another proposal of the Ministry of Industry, the advisory council committee approved the import of 30 thousand metric bulk granular urea fertilizer from Sabic Agro-Nutrients Company.Bangladesh Chemical Industries Corporation will buy this fertilizer. It will cost 124 crore 83 lakh taka.
According to the sources of the meeting, following the approval of the Cabinet Committee on Economic Affairs held on June 11, an agreement was signed for the import of 540,000 metric tons of urea fertilizer from Sabiq Agro-Nutrients Company of Saudi Arabia through a state contract in the fiscal year 2024-2025.
According to the agreement with Sabic Agro-Nutrients Company, an initiative has been taken to purchase 30 thousand metric tons of bulk granular urea fertilizer in the tenth lot by fixing the price of the fertilizer.
As 346.75 US dollars per metric ton, the total cost will be 1 crore 4 lakh 2 thousand 500 US dollars. Its amount in Bangladeshi currency is 124 crore 83 lakh taka.
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What are the potential economic impacts of the goverment’s fertilizer procurement on local farmers?
Interview: Editor of Time.news wiht Dr. Anika Rahman, Agricultural Economist
Editor: Good morning, Dr.Rahman! Thank you for joining us today. We’ve just learned that the government has decided to procure 60 thousand metric tons of urea fertilizer at a meaningful cost. Can you share your thoughts on this decision?
Dr. Rahman: Good morning! It’s a pleasure to be here. The decision to purchase 60 thousand metric tons of urea fertilizer is quite strategic, especially in the context of bolstering agricultural productivity. Fertilizers play a critical role in enhancing crop yields adn ensuring food security. The investment of approximately 245 crore 65 lakh 50 thousand taka certainly indicates that the government is serious about supporting our farmers.
Editor: Definitely. This procurement is being facilitated by the Advisory Council Committee on Public Procurement. What does the involvement of this committee imply for the transparency and efficiency of the process?
Dr. Rahman: The involvement of the Advisory Council Committee is a positive sign. their approval suggests that the procurement process is being carefully monitored to ensure it aligns with public procurement standards and regulations. This oversight is crucial to prevent any corruption or misallocation of resources. It also helps in ensuring that funds are utilized effectively for the intended purpose.
Editor: I understand that this fertilizer will be sourced from Karnaphuli Fertilizer Company limited and Sabiq Agro-Nutrients Company in Saudi Arabia. Why is it important to include both domestic and international suppliers in this procurement?
Dr. Rahman: Including both domestic and international suppliers creates a balanced and competitive market. By sourcing from a local company, we’re supporting the domestic economy and encouraging local production, which is vital for sustainability. Meanwhile, engaging with an international supplier like Sabiq Agro-Nutrients can introduce better technology, practices, and a wider variety of products, which can ultimately benefit our farmers. This dual approach can foster innovation in the agricultural sector.
Editor: Looking ahead, how could this procurement affect the agricultural landscape in our country?
Dr. Rahman: If properly implemented, this procurement could significantly boost agricultural output.Increased access to urea fertilizer,which is essential for many crops,can lead to higher yields and potentially lower food prices,benefiting consumers. Moreover, if farmers are educated on optimal fertilizer use and integrated farming techniques, we could see a transformation in agricultural practices that supports sustainable progress.
Editor: That sounds promising. Lastly,could you share any insights on the global fertilizer market trends that might impact our local farmers?
Dr. Rahman: Absolutely. Global fertilizer prices have been volatile due to various factors, including supply chain disruptions and geopolitical tensions. If global prices rise, it could lead to increased costs locally, challenging farmers’ profitability. Though, by securing favorable contracts with companies now, our government may mitigate some of these price fluctuations. Moreover, focusing on sustainable practices, such as using organic alternatives or precision agriculture, could help reduce dependency on synthetic fertilizers in the long run.
Editor: Thank you,Dr. Rahman, for your insightful analysis. It’s clear that while procurement is a vital step, the broader implications on sustainability and farmer education will be key moving forward.
Dr. rahman: Thank you for having me! It’s crucial that we continue these conversations to ensure the future of agriculture is both prosperous and sustainable.